Magerschwein Technische Analyse - Magerschwein Handel: 2018-12-13

Lower pig supply bullish for LHOG

Spread of African swine fever in China negatively affects supply of pigs in the world’s largest pork consumption market. Will the LHOG continue gaining?

On the daily timeframe the LHOG: D1 has breached above the 200-day moving average MA(200).

• The Parabolic indicator gives a sell signal.
• The Donchian channel indicates uptrend: it is narrowing up.
• The MACD indicator gives a bearish signal: it is above the signal line and the gap is narrowing.
• The Stochastic oscillator is falling but has not breached into the oversold zone.

We believe the bullish momentum will continue after the price breaches above the upper boundary of Donchian channel at 67.676. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the lower Donchian boundary at 63.795. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop loss level (63.795) without reaching the order (67.676), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Technical Analysis Summary